Critical Analysis: Liberty Tax (TAXA) vs. Its Rivals
Liberty Tax (OTCMKTS: TAXA) is one of 25 publicly-traded companies in the “Patent owners & lessors” industry, but how does it contrast to its peers? We will compare Liberty Tax to similar companies based on the strength of its institutional ownership, risk, profitability, dividends, analyst recommendations, valuation and earnings.
Risk & Volatility
Liberty Tax has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Liberty Tax’s peers have a beta of 1.85, suggesting that their average stock price is 85% more volatile than the S&P 500.
This table compares Liberty Tax and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Liberty Tax||$174.87 million||$130,000.00||N/A|
|Liberty Tax Competitors||$185.18 million||$7.71 million||2.36|
Liberty Tax’s peers have higher revenue and earnings than Liberty Tax.
This is a breakdown of recent ratings and target prices for Liberty Tax and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Liberty Tax Competitors||94||314||615||12||2.53|
As a group, “Patent owners & lessors” companies have a potential upside of 27.62%. Given Liberty Tax’s peers higher possible upside, analysts clearly believe Liberty Tax has less favorable growth aspects than its peers.
Institutional and Insider Ownership
40.9% of Liberty Tax shares are owned by institutional investors. Comparatively, 36.5% of shares of all “Patent owners & lessors” companies are owned by institutional investors. 15.3% of Liberty Tax shares are owned by insiders. Comparatively, 18.6% of shares of all “Patent owners & lessors” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Liberty Tax and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Liberty Tax Competitors||-150.86%||-59.86%||-43.28%|
Liberty Tax pays an annual dividend of $0.64 per share and has a dividend yield of 5.9%. As a group, “Patent owners & lessors” companies pay a dividend yield of 1.9% and pay out 29.3% of their earnings in the form of a dividend.
Liberty Tax beats its peers on 6 of the 11 factors compared.
About Liberty Tax
Liberty Tax, Inc., through its subsidiaries, provides tax preparation services in the United States and Canada. The company also facilitates refund-based tax settlement financial products, such as refund transfer products and personal income tax refund discounting, as well as provides an online digital Do-It-Yourself tax program in the United States. Its customers include taxpayers who, for reasons of complexity, convenience, or the need for prompt tax refunds, seek assisted tax preparation services. The company offers its products and services through a network of company-owned offices and franchised locations under the Liberty Tax, Liberty Tax Service, Liberty Income Tax, Liberty Canada, and SiempreTax+ brand names. The company was formerly known as JTH Holding, Inc. and changed its name to Liberty Tax, Inc. in July 2014. Liberty Tax, Inc. was founded in 1996 and is headquartered in Virginia Beach, Virginia.
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